In order to be able to apply credits to debits at the granular level shown above, each financial transaction whose amount is a debit (amount is greater than or equal to zero) must be assigned a debt category
For adjustments that are debits, the debt category is defined adjustment type
For bill segments, the debt category is defined on the obligation type
For payments that are debits, for example "negative" payments used to refund money via direct deposit, the base product provides an FT freeze algorithm called C1-CFTZ-RPDC to plug into the Account Type that populates the debt category.
Debt categories may also be linked to credit financial transactions. The base algorithm that allocates credits to debits uses the debt category on credit financial transactions as a prioritization. See Determine Balance Details Algorithm for more information.
The debt category priority defines the order in which credits may be applied to debits.
The default debt category priority is defined on the obligation type
If a certain type of credit adjustment, for example a withholding credit dictates a different priority than the default, define the override debt category priority on the adjustment type.
A financial transaction could reference a debt category priority directly for unusual situations where a payment may require a special debt category priority
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